The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis. Category Components of GDP in 2013 (billions of dollars)
Consumer spending
Durable goods $1,263.0
Nondurable goods 2,622.9
Services 7,615.7
Private investment spending
Fixed investment spending 2,564.0
Nonresidential 2,047.1
Structures 456.4
Equipment and intellectual property products 1,590.7
Residential 516.9
Change in private inventories 106.1
Net exports
Exports 2,259.9
Imports 2,757.2
Government purchases of goods and services and investment spending
Federal 1,245.9
National defense 770.7
Nondefense 475.1
State and local 1,879.6
1) Calculate 2013 consumer spending.
2) Calculate 2013 private investment spending.
3) Calculate 2013 net exports.
4) Calculate 2013 government purchases of goods and services and government investment spending.
5) Calculate 2013 gross domestic product.
6) Calculate 2013 consumer spending on services as a percentage of total consumer spending.
7) Calculate 2013 exports as a percentage of imports.
8) Calculate 2013 government purchases on national defense as a percentage of federal government purchases of goods and services.
The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis. Category Components of GDP in 2013 (billions of dollars)
Consumer spending
Durable goods $1,263.0
Nondurable goods 2,622.9
Services 7,615.7
Private investment spending
Fixed investment spending 2,564.0
Nonresidential 2,047.1
Structures 456.4
Equipment and intellectual property products 1,590.7
Residential 516.9
Change in private inventories 106.1
Net exports
Exports 2,259.9
Imports 2,757.2
Government purchases of goods and services and investment spending
Federal 1,245.9
National defense 770.7
Nondefense 475.1
State and local 1,879.6
1) Calculate 2013 consumer spending.
2) Calculate 2013 private investment spending.
3) Calculate 2013 net exports.
4) Calculate 2013 government purchases of goods and services and government investment spending.
5) Calculate 2013 gross domestic product.
6) Calculate 2013 consumer spending on services as a percentage of total consumer spending.
7) Calculate 2013 exports as a percentage of imports.
8) Calculate 2013 government purchases on national defense as a percentage of federal government purchases of goods and services.
Related textbook solutions
Related questions
| Table 1.1.5. Gross Domestic Product | |||||
| Line | Ā | 2015 | 2016 | ||
| III | IV | I | II | ||
| 1 | Gross domestic product | 18141.9 | 18222.8 | 18281.6 | 18436.5 |
| 2 | Personal consumption expenditures | 12356.9 | 12438.8 | 12498 | 12695.1 |
| 3 | Goods | 4043 | 4038.1 | 4008.7 | 4086 |
| 4 | Durable goods | 1364.7 | 1371.8 | 1366.6 | 1390.4 |
| 5 | Nondurable goods | 2678.4 | 2666.3 | 2642 | 2695.6 |
| 6 | Services | 8313.9 | 8400.6 | 8489.3 | 8609 |
| 7 | Gross private domestic investment | 3072.1 | 3059.9 | 3036.8 | 2973.6 |
| 8 | Fixed investment | 2995.3 | 2997.2 | 2994.8 | 2992.2 |
| 9 | Nonresidential | 2331.5 | 2311.3 | 2292.4 | 2294 |
| 10 | Structures | 508.5 | 487.8 | 486 | 479.3 |
| 11 | Equipment | 1099.7 | 1092.6 | 1066.3 | 1056.6 |
| 12 | Intellectual property products | 723.3 | 730.9 | 740.1 | 758.2 |
| 13 | Residential | 663.8 | 685.9 | 702.4 | 698.2 |
| 14 | Change in private inventories | 76.8 | 62.7 | 41.9 | -18.6 |
| 15 | Net exports of goods and services | -523.4 | -520.9 | -507.4 | -495.5 |
| 16 | Exports | 2259.1 | 2211.7 | 2179 | 2206.8 |
| 17 | Goods | 1495.6 | 1448.3 | 1410.9 | 1437.8 |
| 18 | Services | 763.5 | 763.4 | 768.1 | 769 |
| 19 | Imports | 2782.5 | 2732.6 | 2686.3 | 2702.3 |
| 20 | Goods | 2284.1 | 2235 | 2185.7 | 2199.1 |
| 21 | Services | 498.4 | 497.7 | 500.7 | 503.2 |
| 22 | Government consumption expenditures and gross investment | 3236.3 | 3245 | 3254.3 | 3263.4 |
| 23 | Federal | 1225 | 1234 | 1233.8 | 1239.2 |
| 24 | National defense | 729.3 | 735.6 | 731.4 | 729.3 |
| 25 | Nondefense | 495.7 | 498.4 | 502.4 | 509.9 |
| 26 | State and local | 2011.3 | 2011 | 2020.5 | 2024.1 |
&
| Table 1.1.6. Real Gross Domestic +A1:F26Product, Chained Dollars | |||||
| Line | Ā | 2015 | 2016 | ||
| III | IV | I | II | ||
| 1 | Gross domestic product | 16454.9 | 16490.7 | 16525 | 16570.2 |
| 2 | Personal consumption expenditures | 11255.9 | 11319.3 | 11365.2 | 11487.4 |
| 3 | Goods | 3932.6 | 3953.4 | 3964.7 | 4033.4 |
| 4 | Durable goods | 1512.4 | 1527.3 | 1524.9 | 1561.3 |
| 5 | Nondurable goods | 2451.3 | 2458.4 | 2471.1 | 2505.6 |
| 6 | Services | 7327.2 | 7369.8 | 7403.9 | 7460.5 |
| 7 | Gross private domestic investment | 2882.2 | 2865.4 | 2841.5 | 2769.9 |
| 8 | Fixed investment | 2794.5 | 2793.3 | 2786.7 | 2769 |
| 9 | Nonresidential | 2217.5 | 2198.8 | 2179.7 | 2174.8 |
| 10 | Structures | 453.4 | 435.1 | 435.2 | 425.8 |
| 11 | Equipment | 1085.7 | 1078.6 | 1052 | 1042 |
| 12 | Intellectual property products | 683.1 | 690.7 | 697.1 | 711.7 |
| 13 | Residential | 573.7 | 589.5 | 600.7 | 588.8 |
| 14 | Change in private inventories | 70.9 | 56.9 | 40.7 | -12.4 |
| 15 | Net exports of goods and services | -547.1 | -566.6 | -566.3 | -562 |
| 16 | Exports | 2120.4 | 2105.8 | 2102 | 2108.1 |
| 17 | Goods | 1440.7 | 1423.8 | 1424.1 | 1430.3 |
| 18 | Services | 679.3 | 681.1 | 677.3 | 677.4 |
| 19 | Imports | 2667.6 | 2672.4 | 2668.2 | 2670.1 |
| 20 | Goods | 2197.4 | 2201.4 | 2194.1 | 2194.3 |
| 21 | Services | 468.2 | 469 | 471.9 | 473.6 |
| 22 | Government consumption expenditures and gross investment | 2894.4 | 2901.7 | 2913.2 | 2902.1 |
| 23 | Federal | 1112.7 | 1123 | 1118.7 | 1117.8 |
| 24 | National defense | 669 | 676.3 | 670.9 | 665.7 |
| 25 | Nondefense | 443.1 | 446.2 | 447.2 | 451.4 |
| 26 | State and local | 1779.9 | 1777.1 | 1792.6 | 1782.6 |
| 27 | Residual | -49.2 | -49.6 | -46.5 | -52.6 |
1.Why was the nominal GDP greater than real GDP in each of those quarters?
2.What was the percentage change in Nominal GDP for the most recent quarter compared to the previous quarter? What was the percentage change in real GDP for the two quarters?
3.What accounts for the difference in the two percentages?
1. Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.
2. Suppose a consumer buys 10 units of good X and 20 units of good Y every year. The following table lists the prices of goods X and Y in the years 2005-2007. Assume that these two goods constitute the typical market basket. Calculate the price indices for these years with 2005 as the base year. Comment on the inflation picture for these years.
|
Year |
Good X |
Good Y |
|
2005 |
$3 |
$6 |
|
2006 |
4 |
7 |
|
2007 |
4.5 |
7.5 |
3. Using the expenditure approach, calculate GDP using the following data.
|
Item |
Amount in dollars (billions) |
|
Consumption |
7,600 |
|
Consumption of Durable Goods |
1,600 |
|
Consumption of Non Durable Goods |
2,800 |
|
Consumption of Services |
3,200 |
|
Investment |
2,750 |
|
Fixed Investment |
1,000 |
|
Government purchases of Goods & Services |
1,675 |
|
Government Transfer Payments |
450 |
|
Exports |
750 |
|
Imports |
1,600 |
|
GDP Equals |
Ā |
4. a. What is the importance of measuring per capita GDP?
b. Why nominal GDP can be misleading?
